Oil and gold higher, bitcoin steady

Oil edges higher as central banks choose long term stability

Improved risk appetite and central banks around the world that are acting now in order to preserve the long-term potential of their economies is boosting oil prices again today. Crude continues to face significant headwinds from the omicron variant, with the demand outlook for early next year taking a hit but OPEC+ stands ready to act should the situation necessitate which will continue to backstop prices for now.

Can gold continue to rally?

Gold is performing quite well on Thursday, up more than 1% as the dollar pulls back off recent highs. The Fed delivered but didn’t surpass expectations which seems to be leading to some profit-taking in the greenback. Add in the over-delivery from the BoE and the ECB committing to end PEPP and the dollar is under a little pressure, which is typically good for the yellow metal.

Whether it can continue to push higher is another thing. Higher rates, a strong dollar, and central banks addressing inflation concerns should be bearish for gold, despite today’s moves.

Bitcoin enthusiasts now hoping for half the six-figure forecasts at year-end

Bitcoin is continuing to range trade after another chaotic week for the markets. On the one hand, the trend is very much against it but it is seeing some strong support around USD 47,000. Crypto bulls are clearly digging their heels in and reluctant to let it end another stellar year on a negative note. Many were hoping for six figures by year-end. Now they may be crossing their fingers and hoping for half that.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.